Health insurance premiums changed mid-year unexpectedly

Question

I have a company-sponsored health insurance. They decided to change premiums effective Aug 1 2008 and gave us a notice of the same on July 31 2008. Questions.

1. Is this legal - Can the insurance company change premiums mid-year? at such short notice?

2. What can we do to make sure our interests are not being hurt?

Answer 1

Yes, it is legal.  Employers are not, in fact, required to offer any health plans.  But is the plan changing or just the premium amount?  You are not clear on that.

Answer 2

1.   Assuming either their plan changed to a different plan, or renewed effective 08/01, yes.  Insurance companies can raise their rates at policy inception, and upon renewal.  There's no "law" that says they can only raise rates January 1st.   If your policy INCEPTION, though, is January first, those rates are locked the entire year.  It's all about the policy EFFECTIVE date.   If they changed insurance companies effective August 1st, then THAT'S the new policy effective date.  Effective date CAN be different from the open enrollment date.  

2.  Nothing.  Just compare coverages, and get a new job if you don't like the new plan.  That sounds harsh, but employers are NOT required to provide you with any benefits at all.  If they do, they are not required to PAY for them, or even contribute.  The employee gets NO SAY in the matter, unless you have a contract with the employer that says otherwise - which is pretty rare.

Answer 3

Unless they contract to do otherwise they can up it when they want, but you don't have to stay with them.

Answer 4

How long have you been with this company??

It may be the contract time on a non contract year.

Husbands insurance premiums get raised every year at the same time, irregardless of whether or not it's a contract year or not.  

Hey one year we weren't notified until well into august that our changes were made July 1 lmao!!! THat was a shocker!!!